Today I’ll put aside the review of winning orders to talk about another topic that adds richness to this small blog. In this article, I will highlight top 5 trading mistakes that cost traders money and tips to avoid those unnecessary losses. It’s shameless to show off, but the picture below is proof that the fewer mistakes I make, the more profits I get.
Now let’s see if you have made any trading mistakes below.
One of the worst mistakes is putting too much money in the trading account
Have you ever put capital and profit in your account? You will see how big it is, right? If the money is always available, you will enter orders right after seeing beautiful entry points to earn more. There will be 2 cases:
– If you win, there is nothing to discuss.
– If you lose, you will think bitterly about the initial amount of money that has been reduced a little. So you want to recover it by entering a bigger order. And finally, you end up blowing the whole account. Just because of the revenge mind, all of your capital and hard-earned profits are lost.
Therefore, to overcome this mistake, it is necessary to withdraw all the money in the account when not trading. Deposit only when you’re ready to trade and have a stable mind. Avoid random situations where you can make some extra orders when you have a lot of money in your account. I once turned my account over $2,000 to zero because of this mistake.
At the end of the week, you should withdraw all money in the account to the bank. You don’t have to pay any fees when depositing and withdrawing from Olymp Trade, so you don’t have to worry about anything. If you want to trade OTC, it only takes a few minutes to deposit. So remember not to put a lot of money in your account.
Try to trade by all means to get the desired profit
Have you ever had your profit target of $50/day and made $48? At that time, I am sure that you will try to find ways to fulfill the target. With the thought that there is only a little more to be beautiful, then you must have burned your account a couple of times because of that. I often call it the death before the door of heaven.
Don’t lose your previous $48 for $2. Stay awake and remind yourself that the market is still there. We can make money the next day, the day after tomorrow or forever.
To avoid this mistake, you should limit the maximum number of trades. If you want to trade more than the number of orders per day, make sure they meet the conditions to enter the order. Don’t randomly enter an order and then have to utter two words “if only”.
No fixed trading hours
Are you the type of trader who wants to seize every opportunity as it appears in the market? You like to open the chart all day to look for profit? This is also one of the most common mistakes traders often make, especially those whose main jobs are office staff.
They can both do desk work and observe the market every second of every minute. But that doesn’t make them gain more profits. On the contrary, they lose a lot. If they can’t control themselves, they can also be judged as unprofessional or not completing the work assigned by their superiors.
If you are in such a situation, then I advise you to stop doing it now. Don’t do many things at once because it will distract you. I think during office hours, you should only focus on your main job to earn a stable income. In the evening, after the work is done and the food is finished, you can comfortably devote all your energy to the trading work to earn more.
Adding more orders against the trend is one of the biggest trading mistakes
This is possibly the biggest trading mistake anyone has ever made. For example, when the market is in a strong uptrend, you think that the price is too high and will soon reverse from bullish to bearish. So you add a bearish order as soon as that thought pops into your head.
Just like that, the market doesn’t go your way and a losing order happens. You comfort yourself again that the price will soon be as expected and then open another bearish order with a larger volume. And each order you open against the trend will gradually bring your account to zero.
It is a sad story that every trader must go through once. To overcome this mistake, you need to have a trend trading strategy. Don’t catch those reversals that look delicious when you’re not a professional trader.
Trading addiction is the mistake that needs to be avoided the most
Trading addiction has all the same symptoms as alcohol or other stimulants. You can list all of those symptoms and substitute the word “trading” for the word “alcohol” and it will make sense right away. As you know, what is just enough is good. But if it leads to addiction, everything is bad.
Trading is like a simple entertainment game. If you know how to properly regulate it, it will be entertainment that brings money, a win-win situation. Otherwise, it will make you addicted and then lose money, health and time.
If you feel uncomfortable when you’re not allowed to trade, congratulations, you are now “addicted”. Quit it or you will become a penniless person when you are always engaged in red and black transactions.
Therefore, do not put too much emphasis on profit or money when trading. Just follow the right set of trading rules and you have won against yourself. I’m sure in the long run discipline will give you everything you want.
Mistakes are inevitable in the trading process of a trader. But you need to understand that each mistake costs money and you have to figure out how to fix it. Don’t make the same mistake countless times. It will make your road to success in Olymp Trade even further.
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